Quotas, such as limiting the amount of residential water use during a drought, restricts an individual's preference set and
A) reduces utility because an individual cannot consume as much as they would without the quota.
B) increases utility because quotas restrict output and raise profits for the water company.
C) reduces utility because an individual is forced to substitute to other goods.
D) does not affect overall utility.
A
Economics
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In the case of a linear demand curve, demand becomes more price elastic as price increases
Indicate whether the statement is true or false
Economics
If the percentage change in quantity demanded for a good is larger than the percentage change in its price, then the price elasticity of demand of the good is said to be: a. elastic
b. inelastic. c. perfectly inelastic. d. unit elastic.
Economics